Shein’s initial public offering (IPO) on the London Stock Exchange has been delayed as the government carries out supply chain checks.
The UK’s Financial Conduct Authority (FCA) has paused its approval of the fast fashion retailer’s IPO as they carry out supply chain checks, according to Reuters.
It follows pressure from Stop Uyghur Genocide (SUG), an advocacy group acting on behalf of China’s Uyghur population, which formulated a legal challenge in June – and sent the FCA a dossier in August – alleging that Shein uses cotton from China’s Xinjiang region.
Britain’s Independent Anti-Slavery Commissioner has also raised concerns within the government over Shein’s proposed IPO in London due to allegations about labour practices at its suppliers.
Following months of speculation, Shein, which is headquartered in Singapore, secretly filed for a London listing in June 2024.
In October 2024, Shein declared that UK sales had topped £1.5 billion in the last year, and profits had doubled as it continued to cash in on trends and draw in shoppers with low-cost items.
Last month it was reported that Shein is preparing to launch an IPO on the London Stock Exchange in the first quarter of 2025. The blockbuster float is expected to value the retail giant at around £50 billion. However, supply chain concerns were also raised in August 2024 when Shein suspended orders from suppliers involved in child labour.
Shein is reportedly also awaiting approval from China’s securities regulator for its London IPO, which is likely to come after the decision by the FCA.
This follows Shein’s recent return to the UK. Earlier this month, the retailer hosted the third instalment of its Christmas bus tour. The pink and red-clad bus made stops at 12 major cities across the UK, including Manchester, Liverpool and Cardiff where customers and celebrities hopped aboard to interact with festive fashion.
